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business p2 doubts and notes here

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IGCSE hater!:
does anyone knoe where v can get better practice on p2 business?
and if any of you have doubts post them...v'll try help each other =)

Skelli:
I dont know about n e sites with business notes other than the ones tht "the winner" posted but i do have some doubts, heres one M/J 04 Question 1 b (i). i saw the mark scheme but i cdnt really understand the method of calculation! it would be great if you could help me.

Crooked:

--- Quote from: Skelli on May 30, 2010, 02:13:29 pm ---I dont know about n e sites with business notes other than the ones tht "the winner" posted but i do have some doubts, heres one M/J 04 Question 1 b (i). i saw the mark scheme but i cdnt really understand the method of calculation! it would be great if you could help me.

--- End quote ---


Sales 10,000x$20 = $200,000 (1 Mark)
Programme sales 0.1 X 10,000 X $2 = $2,000 (1 mark)
Less Commission $2,000 (1 mark)
Less Overheads $10,000
Less ground hire $2000 (1 mark)
Less hire of acts $100,000
$88,000 (1 mark)

means..10000 tickets were to be sold..wid a price of $20/each. therefore..10000 x $20 = $200000
the programme ticket were sold to 10% of the total ticket holders..i.e..10000 x 10/100 = 1000 ticket holders..and the price per ticket was $2..therefore..$2 x 1000 = 2000
commission paid was 1% of the total sales revenue (price x tickets sold, i.e. $200000). therefore, $200000 x 1/100 = $2000
see the extract..line 4..Candy Shows Ltd. uses the local football ground for all the events. It costs $2 000 per day to
hire.   this is the Fixed cost and must be deducted from the revenue along with overheads.
the hire of acts must also be deducted from the total revenue in order to get the forecast profit..hope yuh understood. =]

Skelli:
Omg! Thank you sooo much i get it now! =) theres this other question (calculation) that drove me off the wall! M/J 06 question b, its ARR and payback. I just hate those two...

Crooked:

--- Quote from: Skelli on May 30, 2010, 02:54:24 pm ---Omg! Thank you sooo much i get it now! =) theres this other question (calculation) that drove me off the wall! M/J 06 question b, its ARR and payback. I just hate those two...

--- End quote ---


Year                     0    1     2     3     4     5
New Van             –10  +2   +4   +6   +8  +10
Quicksell contract –20 +10 +10  +10  +10  +10

in the year 0, there won't be any inflows..n the -10 and -20 shown are cost of investment.

for payback of van.. this is the formula yuh need to use : 
  amount required in the year/inflow in the year x 12(for months)
therefore, 10-2-4= 6 . in two years yuh had a net flow of $6000. and now yuh need $4000 more to get back the money invested
what yuh need to calculate now is how much time will it take to earn back the money invested..

so..  4000/6000 x 12 = 8 months.
therefore..it'll take 2 years and 8 months to earn back the money invested.


for ARR of supermarket..first yuh would neeed to calculate the annual profit :
net inflow - investment cost
--------------------------
total number of years


50 - 20
-------         = 6 ; $6000 per annual.
  5 years.           


the formula for ARR is as follows:

annual net profit
---------------      x  100
investment cost

$ 6
----  x 100 = 30%
$ 20



hope yuh understood. =]

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